"We have a team travelling - actually, they're coming to Europe. The team would explore not only on how we can address these flaws in the nuclear agreement, but also how can we cooperate more on countering Iran's activities that are not related to their nuclear program. This also includes our concerns about their arms exports to Yemen and elsewhere," said Tillerson.

Earlier, Tillerson arrived in London on Monday to visit the new US embassy, days after US President Donald Trump slammed the location and the cost of the embassy as a "bad deal" under the Obama administration.

He also met his British counterpart Boris Johnson, United Kingdom Prime Minister Theresa May and National Security Adviser Mark Sedwill and agreed to set up a joint working group to fix the flaws of the nuclear deal, signed by the US and Iran in 2015.

Last week, Trump called on US' European allies to fix the "terrible flaws" in their 2015 landmark Iran nuclear deal and warned that his country would pull out if the demands were not met.

"I am waiving the application of certain nuclear sanctions, but only in order to secure our European allies' agreement to fix the terrible flaws of the Iran nuclear deal. This is the last chance", he said.

The US president also slapped new sanctions against 14 individuals and entities for allegedly committing human rights abuses in Iran or supporting the country's ballistic missile programmes.

Meanwhile, Iranian President Hassan Rouhani maintained that Tehran will continue to produce missiles for defence purposes and does not believe the new sanctions imposed to be a violation of international accords.

As per reports, Trump agreed to waive sanctions at the urging of his top national security and foreign policy advisers, including Secretary of State Rex Tillerson and national security adviser H.R. McMaster.

Earlier in October last year, Trump threatened to terminate the 2015 Iran nuclear deal if the Congress and US allies failed to amend the agreement by fixing serious flaws in significant ways. (ANI)